Earnings Coverage - HD Supply Holdings

LONDON, September 16, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings coverage on HD Supply Holdings Inc. (NASDAQ: HDS). The company reported its financial results for Q2 FY14 on Tuesday, September 09, 2014. During Q2 FY14, the company's net sales grew 9% from last year and its adjusted net income per diluted share surged 117% on a year-on-year basis. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview  

HD Supply Holdings Inc.'s net sales during Q2 FY14 increased to $2,447 million from $2,237 million in the previous year quarter, representing the company's seventeenth consecutive quarter of year-over-year average daily sales growth. Bloomberg analysts' were expecting the company to report net sales of $2,406 million. HD Supply Holdings Inc.'s gross profit as a percentage of net sales for Q2 FY14 improved marginally to 29.5% from 29.4% in the preceding year quarter. Further, the company's gross profit during Q2 FY14 increased 10% to $722 million from $657 million in Q2 FY13, driven by execution of the company's category management initiative, partially offset by the competitive environment and mix of products and services. The free research on HDS can be downloaded as in PDF format at:

www.Investor-Edge.com/HDSFreeReport

During Q2 FY14, HD Supply Holdings Inc.'s operating income broadened by $34 million, or 22%, to $186 million, from the previous year quarter, and the operating income as a percentage of net sales improved approximately 80 basis points, from the year ago period. The improvement in operating income is attributed to a decrease in selling, general and administrative (SG&A) expenses as a percentage of net sales and an increase in gross margins. On account of higher operating income and reduced interest expense during Q2 FY14, the company swung into net profits of $48 million, or $0.24 per diluted share, compared with a net loss of $72 million, or $0.47 loss per diluted share in Q2 FY13. The company's net income outperformed Bloomberg analysts' forecasts of $40.72 million, or $0.20 per diluted share. Further, the company's Q2 FY14 adjusted net income increased to $102 million from $37 million in Q2 FY13, primarily driven by sales growth, improving gross margins, and a reduction in interest expense.

Joe DeAngelo, CEO of HD Supply Holdings Inc., expressed satisfaction with the company's execution in the second quarter. He stated that the company delivered strong organic sales and earnings growth and remains cautiously optimistic about the improving end markets. Sign up and read the free analyst's notes on HDS at:

www.Investor-Edge.com/HDS-16092014

In its guidance for Q3 FY14, the company has forecasted net sales to range from $2,425 million to $2,500 million. Adjusted EBITDA is expected to be in the range of $255 million to $265 million, and adjusted net income per diluted share in the range of $0.48 to $0.55.

Stock Performance  

On the day of earnings release, September 09, 2014, shares in HD Supply Holdings Inc. gained 2.77%, ending the session at $28.15. The stock has been almost flat since then, and on the last trading session, Monday, September 15, 2014, it closed at $28.21. The stock vacillated between $28.14 and $28.47 during the trading session. A total of 1.55 million shares were traded, which was above its three months average volume of 1.07 million shares. Over the previous three trading sessions and over the last one month, the company's shares have advanced 1.37% and 6.05%, respectively. Moreover, the stock has gained 17.49% from the beginning of 2014. Shares in HD Supply Holdings Inc. are trading above their 50-day and 200-day moving averages of $27.02 and $25.18, respectively. Furthermore, the stock traded at a PE ratio of 113.98 and has a Relative Strength Index (RSI) of 61.37. Visit Investor-Edge and access the latest research on HDS at:

www.Investor-Edge.com/HDSEarningsCoverage

Sneak Peek to Corporate Insider Trading  

In the last one month, there were eleven insider transactions by four insiders. On August 18, 2014, Steve Margolius, CEO and President of HD Supply Power Solutions, bought 69,124 shares of the company, worth $573,729, at a price of $8.30 per share, while on the same day he sold an equal number of shares for $1,866,350, at a price of $27.00 per share. On August 21, 2014, John Stegeman, Executive President of HD Supply and President, HD Supply Construction and Industrial - White Cap, sold a total of 37,971 shares of the company for $1,063,570 at $28.01 per share. On September 09, 2014, John Stegeman purchased 4,219 shares, worth $35,017.70, at a price of $8.30 per share, and sold equal number of shares for $119,018, at an average price of $28.21 per share. On September 02, 2014, Margaret Newman, Senior Vice President of Human Resources, Communications & Community Affairs, bought a total of 25,242 shares, worth $209,508.80, at an average price of $8.30 per share, while on the same day; she sold equal number of shares for $686,948, at an average price of $27.21 per share. Further, on September 05, 2014, Brian A Bernasek, serving on the Board of Directors of HD Supply Inc., bought a total of 7,967 shares of the company, worth $220,049, at an average price of $27.62 per share. Complimentary in-depth research on HDS is available at:

www.Investor-Edge.com/HDSInsiderTrading

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